Image from
Image from

The property market of America is steadily growing, igniting interest among foreign investors. Costs of residential properties are presently escalating and market values of many homes will most likely increase in the next few years due to imbalance in the supply-demand.

Zillow’s index report showed that the cost of US properties augmented at a rate of 4.9%  in April this year if compared to April last year. Interestingly, the supply of properties lowered to 3.4% for the past year as well.

With decreased supply of properties for sale, it makes it daunting for first time home buyers to purchase a property due to “bidding wars” all over the country according to Zillow. There are few construction in the past 12 months. We are constructing only half as many homes as we should be building in a normal market. And there is insufficient supply of homes that will keep up with increased demands among home buyers”, Chief Economist Svenja Gudell of Zillow said.

“Those individuals looking to purchase a home both in the middle and bottom market have to prepare for bidding wars with properties sold higher that the asking price. It is expected this summer that many buyers will still not buy a home and will still be left searching”, Svenja added.

The property investment usa will continue to recover from damages which resulted from the housing bubble of 2004-2007. Hence, every part of the country is now ripe for real estate investment.

There are many investors in USA including Aussies, Asians and Canadians but the Canadian investors are the country’s top foreign buyers. But recently, this is no longer the case since Chinese investors are already taking the lead and are considered as the biggest foreign buyers of the country.

“In March 2015, Chinese investors snapped properties worth $28.6 billion dollars. Canadians only invested $11.2 Billion Dollars while Indians spend $72.9 Billion dollars for the country’s real estate properties”, says the National Association of Realtors.

For now, China’s real estate market has prospered. Surprisingly, according to realtor Lin Pan, many Chinese sell properties in China and bought properties in Long Island or Manhattan. The average Chinese buyers invest twice the cost spent by foreign buyers and more than thrice the amount invested by Americans.

Lin added that the country’s entire home buyer’s average price is $255,000 dollars. But foreign buyers spend $499,000 and Chinese invest at an average cost of $830,000 dollars. This alone shows who is taking the lead in the country’s real estate market.